Electronic Arts announces plans to acquire Respawn Entertainment, developers
of the Titanfall series. It looks like the deal is worth between $315
million and $445 million, with $151 million of that in cash, and the variable
being up to $140 million based on performance milestones. Here's more:

Electronic Arts Inc. (NASDAQ: EA) announced today an agreement to acquire
Respawn Entertainment, LLC, a leading independent game development studio and
creators of AAA shooter and action games including the critically-acclaimed
Titanfall™ franchise. Respawn brings to EA the proven leadership and studio
talent behind Titanfall and Titanfall 2, two of the most highly-rated shooter
titles in the last five years. The acquisition builds on a successful publishing
partnership between Respawn and EA, with multiple projects currently in
development – a new title in the Titanfall franchise, a game set in the Star
Wars™ universe and a VR gaming experience.

“We’ve seen firsthand the world-class caliber of Respawn as a development studio
with incredible vision, deep talent and an inspiring creative mindset,” said
Andrew Wilson, CEO of Electronic Arts. “Our longtime partnership is grounded in
a shared desire to push the boundaries and deliver extraordinary and innovative
new experiences for players around the world. Together, we’ve brought this to
life in the Titanfall franchise, and now with the Respawn team joining EA, we
have exciting plans to accomplish even more amazing things in the future.”

“We started Respawn with the goal to create a studio with some of the best
talent in the industry, and to be a top developer of innovative games,” said
Vince Zampella, CEO of Respawn Entertainment. “We felt that now was the time to
join an industry leader that brings the resources and support we need for long
term success, while still keeping our culture and creative freedom. EA has been
a great partner over the years with Titanfall and Titanfall 2, and we’re excited
to combine our strengths. This is a great next step for Respawn, EA, and our
players.”

Respawn is the creator and developer of the critically-acclaimed Titanfall
franchise that energized the first-person shooter genre with its innovative
gameplay. The first game, Titanfall, was published by EA in 2014, and received
global recognition with more than 75 top awards. Fans and critics fell in love
with the game’s refreshing, fast-paced multiplayer gameplay. Respawn and EA
launched Titanfall 2 in late 2016, with a new single-player campaign and
expanded multiplayer gameplay, resulting in one of the year’s top-rated
shooters.

Respawn will join EA’s Worldwide Studios organization, a global creative
collective of leading game development studios bringing to life an unmatched
portfolio of top games and services across all major platforms.

Under the agreement, EA will pay $151 million in cash, and up to $164 million in
long-term equity in the form of restricted stock units to employees, which will
vest over four years. In addition, EA may be required to pay additional variable
cash consideration that is contingent upon achievement of certain performance
milestones, relating to the development of future titles, through the end of
calendar 2022. The additional consideration is limited to a maximum of $140
million. The transaction is expected to close by the end of the calendar 2017 or
soon thereafter, subject to regulatory approvals and other customary closing
conditions. The acquisition is expected to be neutral to EA’s net income in
fiscal years 2018 and 2019.

SimplyMonk wrote on Nov 9, 2017, 18:45:I mean, does no at that company see a pattern here?

Buyouts usually work out very well for the people making the decision to sell. They'll make a lot more selling the company than they ever would collecting a paycheck.

Oh, I'm not commenting on Respawns decision to sell. That is a no-brainer. My comment is the delusion that EA has that they can get a return on their investment by acquiring developers when all they seem to be able to do is completely squash their innovations and leave the developer a rotted husk of their former self.

Maybe the Executives at EA are all some sort of Creativity Liches that needs fresh souls in order to preserve their immortality.

“We’ve seen firsthand the world-class caliber of Respawn as a development studio with incredible vision, deep talent and an inspiring creative mindset”

"As such, we've decided to acquire them and do away with all that nonsense like we've done with every other single developer we've ever acquired."

I mean, does no at that company see a pattern here?

Indeed. It makes one wonder why they bother? And it's not like Respawn is worth anywhere close to that. Jesus, just do some major hiring and put out some new IPs.

"You can check your anatomy all you want, and even though there may be normal variation, when it comes right down to it, this far inside the head it all looks the same. No, no, no, don't tug on that. You never know what it might be attached to."

You almost have to wonder at this point if sometimes EA, as a publisher, creatively allows games they consider to be creative to tank so that they can buy the studio making them once it gets into money troubles.

Pepe wrote on Nov 9, 2017, 19:31:Aren't these some of the guys that built the COD franchise and were booted from activision?

Yup. They sued Activision for withholding royalties and then Activision fabricated an excuse to get rid of them. Activision then sued them for the loss of earnings caused by firing them. It was an utterly preposterous debacle.

As for Respawn, they're just cashing in while they can - it's only a matter of time now until the studio is shuttered. This isn't being done for the long-term interests of the company.

Aren't these some of the guys that built the COD franchise and were booted from activision?

If so you would think they would not fall in the same trap again, then again maybe they need the money to stay afloat, I thought titanfall 2 was pretty decent, but not sure sales reflect this, 1 sold pretty bad, that I know.